Launching a New Venture

Launching a New
Venture

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................4
P2 Specific tangible & intangible resources for new venture................................................6
P3. A credible proposal to launch a new venture..................................................................6
M1 Use a range of techniques for competitive analysis to achieve competitive edge...........9
M2 SWOT Analysis of new venture......................................................................................9
D1 Formulate a detailed proposal that demonstrate analysis of competitive market with
supporting contingency planning to minimise risk................................................................9
TASK2...........................................................................................................................................10
P4 Find out the skills that are required to start a new venture at the marketplace...............10
M3 Evaluate range of skills & capabilities needed for launch of new business venture.....11
D2 Discuss supporting costs & timescales that are required for acquiring or developing skills
as well as capabilities...........................................................................................................11
TASK 3..........................................................................................................................................11
P5 Various promotional activities that are used by an entrepreneur while launching new Cafe
..............................................................................................................................................11
P6 Form an appropriate promotional activities plan for both launch and pre-launch..........12
M4 Evaluate an appropriate promotional plan for both launch and pre launch...................13
D3 Critically evaluate different promotional activities to support justification...................13
TASK 4..........................................................................................................................................14
P7 Formulate monthly cash budget for the venture..............................................................14
P8 Applicable legal form for the venture.............................................................................17
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and
anticipated income post and pre launch................................................................................17

D4 Create a pre and post launch monthly itemised cash budget based on financial resources18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21
Books and Journals...............................................................................................................21

INTRODUCTION
Business plays a vital role in the economy. It is seen that there is a proper process of
launching own business. There are number of challenges that come in path of the business owner
and with his own ability the person is able to solve all the issues faced (Paul and Rosado-
Serrano, 2019). Furthermore, each and every entrepreneur requires abilities that will assist them
in identifying clients and achieving their goals in a timely manner. The report is based on new
coffee shop near Hounslow Central in London. The launches of a new market initiative, as well
as its focused product differentiation, are discussed in this study. In contrast, there is a demand
for tangible and intangible resources that can assist small businesses in establishing themselves
on the market. In addition, the project will address the various abilities and competencies of an
investor. The budget is also mentioned at the end of the report so that the structure of the
business can be properly executed by the entrepreneur.
MAIN BODY
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
A small coffee shop that would be named as Sophia’s Cafe will sell coffee, cookies,
brownie, and variety of shakes (Birley and Stockley, 2017). Along with that it provides the
option of customised coffee to its customers. They will make use of updated technology to
operate effectively.
Aim
 To provide high quality food to all the customers
Objectives
 To establish strong image in market
 To attract more and more number of customers
 To provide customised product and service to the customers in order to satisfy them
Target market
It is important to know about the target customers of the organisation. It is vital to note
that it helps to satisfy the needs and wants of target customers effectively. Sophia's cafés provide

both value and service to meet the needs of their customers. Young people are its target
demographic, as it has been determined that they prefer to drink coffee and spend time in cafes.
This target market assists the company in achieving its objectives and tasks in a timely manner.
Competitive analysis: It is critical for Sophia's cafe executives to evaluate their
competition and techniques, as well as assist in the development of a more successful plan that
incorporates one's coffee preferences and has a beneficial impact on sales and profit margins. It
helps to formulate policies that will help the company to gain competitive advantage.
Porter’s five forces analysis
There are five forces that help to know about the competition in the market. It is one of
the vital tools that help to gain edge over the competitor’s (Schmutzler, Andonova and Diaz-
Serrano, 2019). It helps to make strategies to work in future and gain advantage over all the
rivalry. The five forces are discussed below:
Threats of new entrants: As it is a profitable business and people like to have coffee and
bakery products. So it is important to formulate strong image in market so that new entrants are
unable to take away the customers. It is important to formulate good relations with the customers
so that they are loyal towards the company.
Competitive rivalry: Sophia's cafe is at threat because there are so many cafes in the UK that
offer identical products and services. Sophia's cafe managers must concentrate on providing
high-quality products and services while also maintaining positive relationships with customers
in order to keep them for longer periods of time.
Bargaining power of buyers: Customers' purchasing power is regarded as powerful as fresh
coffee at Sophia's cafes, and the resource is provided according to the customer's request (Waqar,
Jamil, and Fadzil, 2020). Furthermore, Sophia's cafe needs something unique that will attract
customers and increase sales accordingly. So in this regard they provide customised services to
all the customers.
Threats of substitutes: Sophia's Coffee offers a variety of coffee flavours that are only
available to customers, therefore replacement is unlikely. Managers must create creative
solutions that contribute to increased revenue and profitability in order to keep up with the
competition. But it is vital to note that the competitor’s may provide same products to the
customers.

Bargaining power of supplier: The suppliers are vital part of an organisation. As they
provide raw material to the business organisation. It's a modern café with a small selection of
vendors selling basic materials like coffee beans (Chu, and Yoon, 2021). This is a significant risk
for Sophia's café, thus it is critical for its management to establish positive connections with
suppliers in order to prevent raw material shortages.
With the help of Porter five forces the companies able to analyse the competition that is
present in the market and formulate strategies that will help them to beat the competition and
gain edge over the competitors.
P2 Specific tangible & intangible resources for new venture.
While starting a new venture there is requirement of various resources and it is important
for business organisation to know about the resources as gathering them helps to operate in an
effective manner. It is seen that there is requirement of both tangible as well as intangible
resources. In relation to Sophia's Cafe the requirement of resources is discussed below
Tangible resources are the resources that can be seen touch. These are the resources that
can be calculated in the physical form (Rambe, 2019). The resources that are required for
Sophia's Cafe are ice cream maker, microwave, fridge, cookware, coffee grinder machines and
other kitchen appliances that help to provide Quality Services to the customers.
Intangible resources mean the resources that cannot be touched but they can be felt. It is
vital to know that they are also important for the organisation and it is important to have good
knowledge about the intangible resources for example it includes copyright TM intellectual
property rights goodwill patent extra. In relation to Sophia's Cafe It is seen that they should have
a patent in their own name so that no one can cause any problem in future as well as the focus is
to develop Goodwill in the market as it helps product more customers and set a good image in
the market that helps to earn more profits.
Above is discussion related to the requirement of resources to carry out a new venture it is
suggested to the business organisation and its management to arrange all the resources and
operate effectively
P3. A credible proposal to launch a new venture
An effective proposal is always required before starting a business. It is important to have
creative and innovative plan that helps to attract the customers. Every business entity formulates